(The following article by Jared Miller was posted on the Great Falls Tribune website on April 20.)
HELENA, Mont. — An attempt to pressure BNSF Railway to reduce its shipping rates for Montana grain farmers died in the Senate.
House Bill 703 would have forced Burlington Northern Santa Fe to reduce the rate it charges to ship Montana grain to West-coast markets or face increased property taxes.
The Senate voted unanimously Monday to table the bill.
BNSF hauls nearly all of the state’s export grain and charges a higher rate than it does in states with more competitive shipping alternatives for grain headed to the Northwest, according to a 2004 report. The discrepancy costs Montana growers about $60 million a year.
The Legislature agreed to kill the bill after BNSF announced last week that it intends to reduce its freight rates for four states, including Montana.
The new rates will save Montana farmers an estimated $5 million to $6 million a year, making up about 10 percent of the price discrepancy.
Also, BNSF Chairman Matt Rose has agreed to meet with state officials to further discuss freight rates, sparked in part by HB703.
Rep. Bob Bergren, D-Havre, the sponsor of HB703, said he’s pleased with the dialogue his legislation created, and he agreed to let the bill die.
“I’ve always had the offer open: If we could get a dialogue open, then I would be willing to kill my bill,” Bergren said.
Richard Owen, executive vice president of the Montana Grain Growers Association, said he would have preferred to see the bill become law.
Owen last week said the railroad’s willingness to reduce its rates by three or four cents per bushel is an “important first step” to bring Montana shipping rates in line with those of other states, but more is needed.
Gov. Brian Schweitzer, who has been pushing BNSF to lower its rates, said he is pleased with progress this session.
“The principle here is that the state of Montana, the producers of grain and coal in Montana, just want a level playing field,” Schweitzer said. “That the railroad has agreed to work toward that objective is a new day in Montana.”
Schweitzer said HB703 could reappear in a special session if BNSF doesn’t keep the communication channel open.